| | 9TRAVEL AND HOSPITALITY TECH OUTLOOKJUNE 2023dynamic models to price award inventory, and in some cases, artificially setting rather questionable minimum off-peak rates when occupancy falls below forty percent. Thus, if guests have no choice but to use a greater number of points for free hotel nights, then at the very least, loyalty benefits should remain consistent. Vexed guests are far less likely to be loyal and hotels should acknowledge recent travel surveys which highlight that despite brands striving to grow their loyalty base and enhance customer retention. Nearly a quarter of respondents indicated that brands are not delivering substantial rewards whilst almost a third believed that brands' earning and redeeming options are overly complicated. Unequivocally, there is a huge opportunity for hotel brands to execute a simplification of their respective loyalty programs with a stronger emphasis on quality and consistency, even if qualification requirements for top loyalty levels are modified to compensate for skyrocketing costs. Increased Competition with Other Hospitality VerticalsAcross the entire hospitality industry, it is imperative to attract high-yielding guests. In recent years, airlines have impressed their premium passengers through game-changing "private suites" with doors in both first and business class along with exquisite five-course menus. Meanwhile, the latest vessels delivered to cruise lines boast dedicated suite class areas (lounges, sundecks, restaurants, etc.) and expansive accommodations that set new gold standards, e.g., two-story villas with private plunge pools even on short itineraries of three nights. One can argue that the newest airline and cruise line products are not available on every market, and that would be true, but the material point is that airlines and cruise lines will either retrofit their older fleets or retire them as they progressively acquire brand-new fleets that will feature equally extraordinary products. Consequently, hotels need to better differentiate themselves to be competitive. Properties worldwide have experimented with the concept of a "hotel within a hotel", ranging from stand-alone overwater suites to private islands within one resort complex; at face value, hotels remain competitive hard product-wise, yet their soft products are on a steady decline. For instance, in the post-Covid era, many hotels have not reopened club/concierge-level lounges typically reserved for suite guests, on-site restaurants operate under reduced hours, and housekeeping shortages cause frustrating downgrade situations, particularly for travelers arriving late at night. The good news is that hotels have a myriad of options that are not costly to implement, yet they can have a powerful impact on the guest's stay--from guaranteeing early check-in/check-out for customers booking the finest accommodations to scheduling top-performing staff to be on duty to look after select guests with whom they have previously interacted. Final ThoughtsThe Covid pandemic brought to light the alarmingly fragile nature of the global hospitality industry. Iconic luxury brands that opted to follow the status quo and to a certain degree took their customers for granted paid the ultimate price: going out of business overnight and later having their few remaining assets auctioned. As hospitality professionals, we cannot be oblivious to the fact that high-yield guests may not give us a second chance if they don't feel valued or appreciated; we must do everything we can do to keep them in an ever-evolving competitive world. Modern luxury encompasses new facets that require hotel brands to be both creative and innovative. Demand for luxury travel will eventually stabilize in 2023 and companies that deploy a comprehensive customer-driven strategy will have the best chances of successfully attracting this lucrative segment.
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